Wrtsil Enters into Licence Agreement with CSSC Guangzhou Marine Diesel Engine Co., Ltd for Manufacture of Wrtsil 2-stroke Engines in China

Wärtsilä Corporation, the marine industry's leading solutions provider, and CSSC Guangzhou Marine Diesel Co.Ltd (GMD), a member of the state-owned China State Shipbuilding Corporation (CSSC) Group, have jointly signed a licence agreement for the manufacture and sale of Wärtsilä 2-stroke engines in China. It covers the entire engine portfolio with a power range of between 4,300 and more than 80,000 kW per engine. The signing ceremony took place on July 19 in Guangzhou, China and was attended by representatives of both companies, headed by Mrs. Lu Xiaoyan, Vice President of CSSC and Dr. Martin Wernli, President of Wärtsilä Switzerland Ltd.

"China's burgeoning growth in shipbuilding capacity during recent years has stimulated the rapid development of the marine diesel engine market. We are, therefore, delighted to have formed this partnership with CSSC Guangzhou Marine Diesel Engine Co., Ltd, and have every confidence that this agreement will enhance Wärtsilä's presence in this region," said Dr. Martin Wernli, President Wärtsilä Switzerland Ltd.

With the shipbuilding industry increasingly concentrated in Asia, the local manufacture of Wärtsilä's marine engines is a key element in the company's growth strategy. GMD is based in the Panyu District, close to the major Chinese city of Guangzhou and the special administrative region of Hong Kong. Established in 2008, the company has state-of-the art production, testing and workshop facilities making it an ideal partner for Wärtsilä in targeting the Chinese shipbuilding market.

From left to right: Mr Zhang Haisen, GM CME; Mr Shao Yu, Deputy GM CMD; Mr Qin Wenquan, GM HHM; Mr Andrew Stump, Business Manager - Merchant, Ship Power Wärtsilä China; Mr Urs Huwiler, License Director China Wärtsilä China; Mr Martin Wernli, President Wärtsilä Switzerland; Mrs Lu Xiaoyan, VP CSSC; Mr Perttu Henttonen, Director Licence Contracts & Legal Compliance Wärtsilä Switzerland; Mr Guo Xiwen, Chief Economist CSSC; Mr Yu Baoshan, Board Chairman GMD; Mr Cao Minghua, GM Purchasing Dept. CSTC

"CSSC and Wärtsilä have been working together for 33 years, going back to July 17, 1978. This co-operation has been a factor in promoting the fast development of China's engine manufacturing industry, leading to a win-win situation for both companies," said Mr. Guo Xiwen, Chief Economist of CSSC.

Wärtsilä expects the first engines to be produced at the end of this year.

Wärtsilä's world-wide network of licensees

Wärtsilä has established a world-wide network of 18 licensees for manufacturing 2-stroke engines. These are located mainly in Asia (Japan, Korea, China, Vietnam), but also in Europe (Croatia, Poland and Russia) and South America (Brazil). The Wärtsilä brand low-speed engines are developed, designed, promoted, licenced, marketed and serviced by Wärtsilä in Switzerland. The engines are produced by specialized engine manufacturing companies under licence from Wärtsilä. The licensees market, manufacture, test and sell the engines under agreed conditions. Wärtsilä continuously supports its licensees in all phases of production and in their sales projects.